Indo Count Inds climbs Q3 PAT rises 30% YoY to Rs 75 cr

Indo Count Industries advanced 1.17% to Rs 290.25 after the company's consolidated net profit jumped 30% to Rs 75 crore in Q3 FY25 as compared with Rs 58 crore in Q3 FY24.

Revenue from operations increased 30% YoY to Rs 1,151.55 crore in Q3 FY25.

Profit before tax (PBT) jumped 26.6% YoY to Rs 99.55 crore in Q3 FY25.

EBITDA stood at Rs 165 crore in Q3 FY25, registering the growth of 40% YoY as compared with Rs 118 crore in Q3 FY24. EBITDA margin reduced 205 bps to 14.2% in Q3 FY25 as against 16.2% in Q3 FY24.

In Q3 FY25, sales volume stood at 27.7 million meters.

Fluvitex USA, Inc. and Modern Home Textiles, USA, along with new licensed brands, have started contributing to revenues. Achieved around Rs 100 crore in revenue in Q3; however, increased investments in systems and new hires have led to lower absorption of fixed costs, the company stated in regulatory filing.

The company aims to set up a greenfield manufacturing facility in North Carolina, USA to deepen its market presence. It will invest approximately $15 million in the project, with a production capacity of 18 million pillows. The facility will be funded through a debt-to-equity ratio of 75:25. The gradual rollout, with revenue buildup targeted from September 2025.

On the outlook front for the financial year the 2024-2025, the company expects to achieve the lower end of sales volume guidance of 110-115 million meters with EBITDA margins in the range of 15-16%, upfront investments in team in USA to impact margins by 150-200bps and core bedding business continues to operate in guided margin range of approximately 16%.

Anil Kumar Jain, executive chairman, said, At Indo count we have outperformed in challenging times especially in some of our end markets. We are making significant progress towards expanding our portfolio with value-added products through our strategic investments and prudent capital allocation.

Our relentless focus on serving both existing and new customers, with the enhanced product portfolio on back of recent acquisitions and value-added solutions, will help us strengthen our leadership position in the market. In the medium term, we see tailwinds in business and have strengthened our leadership team with key hires to drive growth and bring in the right expertise. Focus is also on expanding the brands and utility bedding business which is expected to be a key driver for the next phase of growth. Our optimism remains high for the next 3 years with the strategic initiatives we have executed over the last few quarters.

Indo Count Industries is the largest global home textile bed linen manufacturer.

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